Company Overview: An Australian Real Estate Investment Trust, HomeCo Daily Needs REIT (ASX: HDN), invests in convenience-based assets throughout the target sub-sectors of Neighbourhood Retail, Large Format Retail, and Health & Services. The company was listed on ASX on 23 November 2020.
HDN Details
This report is the updated version of the report uploaded on 21 June 2022 at 2:20 PM GMT.
Key Development Pipeline for June 2022 Quarter:
June 2022 Quarter Update; Analysis by Kalkine Group
1HFY22 Key Performance Highlight: During the period, the company’s leasing spreads stood at +4.9% across 69 leasing deals, with the portfolio delivering more than 99% unadjusted cash rent collection.
Financial Snapshot; Analysis by Kalkine Group
Key Metrics: For 1HFY22, the company reported a net margin of 212.1%, higher than the industry median of 117%.
Profitability Profile; Analysis by Kalkine Group
Top 10 Shareholders: The top 10 shareholders together form around 41.16% of the total shareholdings, while the top 4 constitutes the maximum holding. Di Pilla (David) held the maximum number of shares with a percentage holding of 15.59%, followed by BBRC International Pte. Ltd. holding 8.69%, as also highlighted in the chart below:
Top 10 Shareholders; Analysis by Kalkine Group
Material Update:
Source: Company Report, Analysis by Kalkine Group
Risk Analysis:
Key Risks; Analysis by Kalkine Group
Outlook: HDN’s underlying portfolio exhibited robust quality and strength and expected the same to continue in FY22 & beyond. It remains on track to execute its strategy via an active approach to asset management, development, and acquisitions.
Source: Company Report, Analysis by Kalkine Group
Valuation Methodology: P/E Multiple Based Relative Valuation (Illustrative)
Source: Analysis by Kalkine Group
*% Premium/(Discount) is based on our assessment of the company’s NTM trading multiple after considering its key growth drivers, economic moat, stock's historical trading multiples versus peer average/median, and investment risks.
Stock Recommendation:
Markets are currently trading in a highly volatile zone due to specific macro-economic issues and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.
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HDN Daily Technical Chart, Data Source: REFINITIV
Note 1: The reference data in this report has been partly sourced from REFINITIV.
Note 2: Investment decision should be made depending on the investors’ appetite on upside potential, risks, holding duration, and any previous holdings. Investors can consider exiting from the stock if the Target Price mentioned as per the Valuation has been achieved and subject to the factors discussed above.
Technical Indicators Defined:-
Support: A level where-in the stock prices tend to find support if they are falling, and downtrend may take a pause backed by demand or buying interest.
Resistance: A level where-in the stock prices tend to find resistance when they are rising, and uptrend may take a pause due to profit booking or selling interest.
Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.
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